What Is LLC Company and How Does It Work?

If you’ve been exploring ways to start a business in the U.S., you’ve likely come across the term “LLC” more than once. But what is LLC company exactly, and why are so many entrepreneurs — especially international founders — choosing it as their go-to business structure?

In this guide, I’ll break it all down in plain English. I’ve personally helped set up multiple U.S. companies (LLCs and corporations) for founders worldwide through platforms like Leegal LLC, and I’ve seen first-hand how this structure simplifies ownership, taxes, and liability.

Whether you’re a solo founder in India, a team of developers in Dubai, or an e-commerce hustler from Brazil — forming an LLC in the U.S. is easier than ever. Let’s dive into what an LLC is, how it works, and how us company formation has been simplified like never before.

What Is LLC Company?

The term “LLC” stands for Limited Liability Company — a legal business structure in the U.S. that offers a powerful mix of liability protection and tax flexibility.

Unlike a sole proprietorship or partnership, where your personal assets are at risk, an LLC creates a legal separation between you (the owner) and your business. That means if your business ever faces debts or lawsuits, your personal bank account, car, or home won’t be on the line.

Think of an LLC as the sweet spot between running a full-fledged corporation and keeping things simple.

Quick snapshot:

• ✅ Protects your personal assets
• ✅ Requires less paperwork than a corporation
• ✅ Offers flexible tax options
• ✅ Available to non-U.S. residents

Why LLCs Are Popular for U.S. Company Formation

In my experience, 8 out of 10 international founders prefer LLCs when going through us company formation — and for good reason:

1. Low Maintenance, High Protection

Unlike corporations (which come with shareholders, directors, board meetings, and bylaw complexities), LLCs are straightforward. You don’t need a board or shareholders — just members (aka owners).

2. International Friendly

Here’s something many people don’t know: You don’t need to be a U.S. citizen or have a U.S. address to form an LLC. At Leegal LLC, we’ve helped founders from more than 20 countries launch their U.S. companies remotely — with nothing but their passport and internet access.

3. Tax Flexibility

LLCs are “pass-through” entities by default. That means profits pass directly to the owners’ personal tax returns, avoiding the dreaded “double taxation” that corporations face. But you can also elect to be taxed as a corporation if it benefits your situation.

How Does an LLC Work?

Now that we’ve covered what is LLC company, let’s break down how it actually operates.

Ownership

An LLC can have one owner (called a single-member LLC) or multiple owners (multi-member LLC). You define ownership percentages in your Operating Agreement — which isn’t public but acts like your internal rulebook.

Management

LLCs can be member-managed (owners handle daily ops) or manager-managed (you hire someone to run it). Most freelancers and solo founders choose member-managed structures.

Tax Filing

By default:

• Single-member LLCs file a Schedule C with their personal tax return.
• Multi-member LLCs file a partnership return (Form 1065) and issue K-1s to members.

At Leegal, we always advise speaking to a CPA once your LLC is formed — especially if you’re not a U.S. tax resident.

The LLC Formation Process (Step-by-Step)

Setting up an LLC is surprisingly easy — especially when you go through a one-stop provider like Leegal LLC.

Here’s a simplified checklist based on our streamlined service:

✅ Step 1: Choose a Name & Check Availability

We start with a name check and clearance to make sure your dream name is available in your chosen state (usually Delaware or Wyoming for remote founders).

✅ Step 2: File the Certificate of Incorporation LLC

This is where the magic happens. Your certificate of incorporation LLC (sometimes called Articles of Organization) is the official document that legally registers your company with the state.

✅ Step 3: Get an EIN (Tax ID)

You’ll need an EIN (Employer Identification Number) to:

• Open a U.S. business bank account
• Pay U.S. taxes
• Hire employees (if needed)

Leegal includes this in every package.

✅ Step 4: Set Up Your U.S. Business Bank Account

No need to fly to the U.S. — we help you set up a digital business bank account from anywhere. We work with fintech banks that accept non-resident founders.

✅ Step 5: Access Your Mail Digitally

You’ll get a U.S. business mailing address, plus mailroom access to view or forward important documents online.

✅ Step 6: Stay Compliant

Don’t worry about renewal dates or legal deadlines — Leegal provides lifetime chat, call, and email support, so you’re never in the dark.

Real Founders, Real Stories

One of our clients, Rohan from Mumbai, launched his U.S.-based SaaS tool using an LLC formed via Leegal. In his words:

“I couldn’t believe how easy it was. I thought setting up a company in the U.S. would take months and cost thousands. With Leegal, it took a week, cost under $500, and everything was handled for me — EIN, bank account, all of it.”

Stories like these are why we do what we do.